ActionSA MP Alan Beesley has accused Ashor Sarupen, the Deputy Minister of Finance from the DA, of being involved in the planning of the value-added tax (VAT) hike despite public opposition to the increase.
Beesly said a reply from parliament shows that Sarupen was intimately involved in the budget process from the initially proposed 2% VAT increase, which received a backlash, forcing the budget speech to be postponed in February.
This increase was later changed to a 1% increase with a 0.5% split increase in two financial years.
Beesley had asked Minister of Finance Enoch Godongwana whether he spoke with his two deputy ministers while preparing the budget that was supposed to be presented on February 19.
The response was that Godongwana did consult with both deputy ministers and that they took part in several meetings and helped prepare the budget planned for February 19.
This included briefings on tax policy and expected revenue, discussions with the budget team, and the presentation on Operation Vulindlela phase two.
“They were also involved in other formal and statutory processes such as the budget forum, the budget council, and the ministerial committee on the budget.
“In addition, the deputy ministers of finance were also involved in the speechwriting process by way of giving inputs and commenting on different versions of the draft speech until its finalisation,” reads the response.
Political campaign
Beesley said the DA is using the VAT hike in a political campaign to improve its image and gain more influence in the government of national unity (GNU).
“Far from acting in the public interest, the DA has waged an internal war in the GNU, prioritising extortionist power plays and ministerial positions in the GNU over the financial well-being of millions of struggling South Africans.
“Their kamikaze-style attacks on the budget process were never about blocking an unjust tax hike — they were a deliberate attempt to sabotage the budget entirely and hold the country’s finances hostage, all in the hope of renegotiating their increasingly fragile position in the GNU. They failed,” said Beesley.
Beesley also accused the DA of using the budget process to try and strengthen its hold over the Western Cape.
He criticised what he called the DA’s sudden shift in stance, claiming that the party nearly left teachers and doctors unpaid and now seeks to masquerade as the people’s defender.
He claimed that ActionA entered negotiations without hidden motives and had proposed alternatives to raise over R100-billion in revenue.
“Our only strict conditions, on behalf of the people of South Africa, were no VAT increase and no income tax bracket creep.
“Our recommendations included in the fiscal framework report opened the only practical door to meaningful alternatives — and we backed it up with real solutions,” said Beesley.
